Submitted by ChrisMartenson.com contributing editor Charles High Smith
The Pernicious Dynamics Of Debt, Deleveraging, and Deflation
At this moment, the news media is constantly clamoring about the "Three Ds" that are buffeting the markets: debt, deleveraging, and deflation. We intuitively sense that they're linked -- but how, exactly?
Understanding this linking is critical; as debt has fueled the global expansion, it will also dominate its contraction.
Debt and Deleveraging
To illustrate the forces of debt and deleveraging, let’s consider a home mortgage.